Does a park across the street help or hinder a sale? If the buyer is going to use it, it can be great. If they aren’t, it isn’t. What is the value of the park?

There are a lot of things to consider before going solar. Is your house energy efficient as is? If you don’t have proper insulation and duct work, you would do far better to insulate and repair those in order to get the most for your money. But if your basics are covered, you can then start to consider solar.

There are many things that solar energy can be used for (pools, water heating, etc), but for the sake of this article, we will focus on full house energy.

Generally speaking and in this time of “green/eco” hype, most people would see a solar upgrade as a positive. However, how you implement it makes a big difference.

If you are interested in using solar because you want to and believe in it, then it is a good choice. But if you are thinking about installing solar as a money-making investment, I would suggest skipping it. You will be paying big money for the panels, and even with the rebates, it will take many years to get your money back. A purchase doesn’t make sense unless you have a large family and use a lot of energy. However, the energy in use with solar is renewable and clean, so you can feel good about it even if you are not saving $200 a month.

Personally, I didn’t spend enough on electricity to make it worth while to buy panels according to three solar companies. But that did not prevent me from going solar. I am leasing my solar system from Solar City.

I had a couple choices that I feel were very attractive (results depend on the system you need). I can pay $1000 upfront and then pay Solar City $40/month ($60 less then my usual bill of $100). Or I can pay $2000 upfront and pay Solar City $20 /month for 20 years of the lease (so $80 less then my usual bill). In the end I chose to pay $3200 upfront and pay no monthly fee for the duration of the 20-year lease. With my current bill of $100/month, this will pay for itself in almost 3 years.

This means that when I go to sell my house in 10 years, I can offer my buyer almost free energy for 10 years with the ability to renew two more times for five years after that. And if the owner declines, Solar City will remove the panel and fix any roof damage at their own expense. Plus throughout the lease, Solar City does the upkeep if something goes wrong that is not my fault. So easy!

I don’t see how any buyer would say no to that deal. I believe having almost no energy bills will be an aid to selling my home. And will allow the buyer to have one less bill to worry about when qualifying for a loan.

There are some reports that say that adding solar to a house can increase the home’s value by $5000. So this is not to pay back for an entire solar system. However, you will appeal to more buyers and offer them value. That can’t hurt.

As you can see the answer to my original question really depends on the person putting in the system, what sort of system they are looking for and what the desired intention of using solar is. The best use of money it to insulate, and make sure your HVAC system are in proper working order. But with solar leases, times are changing. There are also tons of rebates and energy efficient loans out there to help you with this process.

More Reading…..

http://www.bondbuyer.com/issues/120_250/ladwp-infrastructure-plan-1034735-1.html

http://www.forbes.com/sites/ashleaebeling/2011/08/01/how-much-do-solar-panels-boost-home-sale-prices/

http://pages.exacttarget.com/solarcity/?id=00330000014Q0uLAAS

Green Your Home

Hopefully you have heard most of these before, but a reminder might get you implementing the basics to save you money, lower your carbon footprint, and live a more healthy life.

Control your temperature: By lowering your home’s heat to the very lowest you can handle in the winter and highest you can stand in the summer will save money and energy. I like to keep my heater set to 74 degrees in the winter and 78 in the summer. If possible, get a programmable thermostat that will turn your system off or down when you aren’t going to be home or are sleeping. If you have a large home and only sleep in one room, I suggest using a space heater for that room at night. Turn off your main HVAC (Heating Ventilation Air Conditioning) system whenever possible and make sure your air filters and ducts are clean for the best air quality and highest efficiency.

Lower the temperature on your hot water heater: If installing a tankless hot water heater is not a possibility, lower the temperature to between 120 and 140 degrees. Turn off your water heating device if you are going to be out of town and not using it for long periods of time. (In cold climates do what is necessary to prevent your pipes from freezing.) Wrap your hot water pipes and heater in insulating material to increase efficiency and reduce heat loss.

Change those bulbs: You have heard it before and hopefully you have changed most of your lights to Compact Florescent Lights already. Here are a couple of ideas you might not have known or considered. You CAN buy energy efficient light bulbs that work on dimmers and have tinted light. Check the labels when you purchase. Consider LED lightbulbs. They are even more energy efficient, turn on immediately and have warmer light tones. If you have tried CFLs and didn’t like them, give LEDs a shot. Put as many lights as you can on dimmers so they use less energy when in use. Please be aware that CFLs are considered hazardous material and should be disposed of properly.

Save water: Though Los Angeles is not technically a desert, we are water impaired. We have far too large a population and too much industry for us to sustain our current usage levels. We must all be conscious of this and conserve. I am sure we all have low flow shower heads and water saving toilets (they are required on Los Angeles properties). If you are not able to install duel flush toilets (my favorite) there are other options. You can “damn” your toilet by putting a weighted plastic bottle (people used to use bricks) in your tank so it uses less water when you flush. Or you can do what my parents used to say to me, “If it’s brown, flush it down. If it’s yellow, leave it mellow.” Practice this within reason of course.

Get rid of that lawn: There are some beautiful and much more climate friendly options for landscaping today. Use some imagination and work with our Mediterranean climate. Try options like xeriscaping or using foliage that doesn’t need supplemental irrigation and native plants, rock or rain gardens. Make your yard your masterpiece. Use rainwater collection or grey water and drip systems whenever possible. You will find some very easy to implement.

Put down that paper: You don’t need a new sheet of paper for everything you write. Keep a stack of paper that have clean backsides next to your printer to use whenever possible. Use the backs of paper you are finished with as scratch paper. Old newspapers and a great way to clean windows streak free. When you do need fresh sheets of paper, buy recycled paper. If we don’t support the recycling programs by purchasing their products, we are not completing the cycle.

Consider microfiber cloths: or scrap clothing for cleaning and drying. We don’t need to use paper towels for everything. And again, buy recycled paper towels, you must support the recycling programs with your patronage. Personally, I think Trader Joe’s recycled toilet paper is the best paper one can buy. (Hate to be personal, but you should try it.)

Slay the vampires: An energy vampire is an electronic device that continues to “suck” energy even when turned off. For instance, if you have a VCR with a display or stand-by light that remains on when turned off, it is using energy. It would be great to have a house that was wired to turn all unused power off when not needed. However that is unfeasible for most of us. Consider putting vampires on a surge protector or power strip. This way you can simply switch off the electronics when not in use. Keep things that must remain plugged in, like clocks or DVRs, in the main outlet, but put that TV and DVD player in the second bedroom that you never use on the surge protector and keep it off.

Be an appliance star: If you can, buy only energy star rated appliances that are more efficient. Run appliances when only when full and after 7 pm. There is a reason energy usage is cheaper at night, take advantage of the smaller burden on the grid and save money at the same time. Get rid of that old second refrigerator in the garage. You replaced it to be more energy efficient, then you kept it for extra storage. Take the leap and get rid of it for good.

Know your bins: The city of Los Angeles has a wonderful environmental programs. I bet you don’t even know how great the waste system is. Go to their website LA City Bureau of Sanitation and see just how many things you can recycle, I promise you will be surprised. Is composting too hard or not your thing? Put fruit and vegetable clippings in the green bin.

At this point I am sure you all are completely overwhelmed. Try to implement these changes little by little and don’t become so daunted that you are paralyzed. I would rather you make 5 small changes then intend to do all and complete none. As mentioned, this is a multi part series and the next installment will suggest physical changes you can make to green your home. For more information on these ideas and help selling, purchasing or remodeling green homes please visit www.TheHouseAgents.com.

For more information on general energy conservation go to the following websites:
consumerenergycenter.org
environmentla.org
energysavers.gov
energyupgradeca.org
makeyourbuildingsworklosangeles.com
fypower.org
Measure your Carbon Footprint

First they spent a couple of hours on the roof measuring, checking the direction of the sun and calculating how many panels would be needed. They plotted exactly where the panels would go, what angle and checked the roof for structural and maintenance issues. I happen to have a nice, flat, fairly-new roof that passed the test. It should be perfect for the right amount of panels to power up our home.

Next they checked the electrical panel on the home. Our panel is not the absolute ideal because it doesn’t have as many free spaces as it needs. However the guys said they might be able to re-configure what is there to find the needed space. They got the numbers to work out on their calculations, they just need to have the architects’ findings work out the same.  They thought everyone could make it work.  Let’s hope they are right.

Next they went into the attic and drew out a plan of all of the load baring walls. They need to have exact measurements of all of the beams and structural walls so the architect can draw up the structural plans for our solar system. They took pictures and drew out a map for them to work from. This should give them the framework to build our system.

Last but not least, they needed to test our internet connection and make sure they could connect the new solar system to the internet. From here they will be able to monitor our system from afar. (Our friend that recommended Solar City to us said that Solar City has spotted issues online that they didn’t even notice and called and had them corrected. SC is watching, even if you aren’t.)

Now all of these figures and measurements are sent back to the Solar City engineers and architects and they come up with a plan for our house. This should take about a month to do. They will come back with a complete diagram of how many panels we need, where they will be located, how they will connect to the electrical grid and internet. We will also soon be getting the rebate information from the LADWP and the finances will be set.

Check back to follow the progress and let me know if you would like a referral to Solar City. We are thrilled with the process thus far and highly recommend a lease vs. a purchase.

For more information please call John Garand the senior solar consultant at SolarCity at 650.963.5686 or email him at jgarand@solarcity.com.  The web address is www.solarcity.com.  And please remember to tell him that Heather Leikin referred you.

Solar City’s January Coupon

By Greg Rand Print Article
Residential real estate is not rocket science. We know that this housing crisis is:

1. Explainable – bad lending, mad speculation, wild expectations, government meddling
2. Isolated – bad mortgages, negative equity, strategic default, government meddling
3. Temporary – demand for housing always catches up to supply eventually

Rental Properties as Investments

Anyone with any experience and perspective will agree that this market will recover over the next 10 years, but what will this particular recovery look like? Since the root of the problem was unprecedented, the solution might be as well.

My belief is that renters are going to solve the housing crisis.

Homeownership rates have fallen by a few percentage points, which has translated into more than four million new rental households in just the past few years. According to the Census, 1.4 million of those were added between July 2010 and June 2011, showing that this trend is accelerating.

As a result, rental rates are growing at more than 5% per year, and this trend is also accelerating.
As a result of this, investors are pouring capital into American housing with a long-term mindset, kicking this trend into hyperspeed.

This crisis will not be solved by enticing home buyers. Their confidence is waiting for unemployment to come down and government to act responsibly, which could take a while.
But investors are confident right now. Why? Because they see the big picture. Rental demand equals stable cash flow. So what can be done to encourage them?

How about eliminating archaic waiting periods for investors who want to buy foreclosures? How about eliminating waiting periods for investors who paid cash and want to tap it with a refinance? Today they have to wait months to put that money back to work. Why not eliminate the overall bias against investors in FHA, Fannie Mae and Freddie Mac and require big down payments to make it safe to lend, and lend.

Better yet, keep your eyes peeled for a private sector player to seize this opportunity to create America’s first national investor mortgage brand. The estimates are that half a million investor loans close every year, and who owns that niche? No one.

The Martial Arts teach you how to use the weight and momentum of your opponent against them (or so they say in the movies). This is the same thing. This drastic increase in rental demand is a by-product of the foreclosure crisis. Use it against the crisis by turning it into positive cash flow investments for those willing to be confident and take a risk in this environment.

Burn off that shadow inventory and create housing options for newly minted renters, which will, in turn, stabilize rental rates, and everybody wins. Good credit renters and buy-hold investors will be the heroes at the end of this saga.

Greg Rand is CEO of OwnAmerica.com and former managing partner of Better Homes and Gardens Rand Realty.
For more information, please visit www.ownamerica.com.

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.
Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. 

Categories: Consumer News and Advice, Home Owner News, Real Estate News, Real Estate Trends, Today’s Marketplace, Today’s Top Story, Today’s Top Story – Consumer

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. 

If you are one of the many people who took advantage of the free-flowing credit offers (you know, during the early 2000′s when people just asked wanted to know ”how much I can borrow” without a second thought) to purchase a home with less than the standard 20% down payment, you are undoubtedly aware that you are paying extra money each month in addition to your principal, interest, and in some cases taxes and interest. What many do not understand, however, is just what those extra payments are for, why they are being charged, or how to get rid of them. And, the interesting thing is that for all those who tried to use a mortgage payments calculator, none of these tools ever mention this additional cost in the calculation, nor do many financial articles that dealt with real estate or mortgages. So, for the uninformed, those extra dollars represent private mortgage insurance or PMI.

What is PMI?

PMI is the money that mortgage lenders charge as a hedge against homeowners falling behind on their payments and eventually defaulting on the loans. It isn’t an insurance for the benefit of the mortgagee, but rather a protection for the lender; a fee that is charged on loans which, when originated, represented more than 80% of the sales price of the home. It used to be that banks would not loan money for the purchase of a home if the prospective buyer could not afford to pay at least 20% of the property’s sales price up front. PMI was established to help potential homeowners reach their goals of homeownership faster by enabling them to put less money down and pay this insurance cost to cover the lender’s increased risk.

How to remove PMI

Since PMI is an insurance coverage for paying less than the standard down payment, it is going to be part of your mortgage for some time. There are, however 3 ways to have the insurance eliminated from your payment:

Cancellation: This is a manual process by which you put in a request with the mortgagor to have the insurance payments removed. To qualify, the account must reach a loan-to-value (LTV) ratio of 80%, but there is a catch. The catch is, the basis for this calculation is the original purchase price of the home, or the current appraised value of the home, whichever value is less. What this means is that if you want to take the initiative to remove the PMI from your loan account, you need to obtain an appraisal, and if the current value is less than the original purchase price of the home, then the loan balance must be at most 80% of this new value. Should the appraisal come in higher than the original purchase price, then the balance has to be at most 80% of the that original price. In a bad economy, this option is less likely to occur since most homes have been devalued in many areas of the country.

Automatic Removal: On July 29, 1999, the new Homeowner’s Protection Act of 1998 was enacted which by law, made this an automatic process that should require no action on your part. If you stay current on your mortgage, the lender is legally required to automatically remove the PMI from your account when the balance reaches 78% of the original purchase price. The lender has 30 days from the date your account reaches this 78% ratio point. Additionally, if there are any unearned premiums charged by the lender they have 45 days from that date to return those premiums to you.

Final Termination: If, for some reason, neither of the first two situations occurred, the lender is required to terminate the insurance the month after the midway point of the loan. Basically, if you are on a 30 year loan which has 360 payments and have not had the insurance cancelled, then by the month following the 180th payment (the midpoint of the loan’s lifetime), the coverage should be removed.

A point of caution

There have been many people who say that making extra payments on loans, or having an appraisal improving the value portion of the LTV equation will accelerate the process of removing PMI. Unfortunately, the wording in the Homeowners Protection Act is quite clear, and contradicts those claims [for automatic cancellation]. The document (on page 2) states in plain English that the thresholds for determining LTV is “based solely on the initial amortization schedule, in the case of a fixed-rate loan,or on the amortization schedules, in the case of an adjustable-rate loan, regardless of the outstanding balance”. What this means is that on no date other than the date determined by the original amortization schedule when the loan reaches the desired LTV can the PMI be [automatically] cancelled.

How you can avoid PMI

There are 2 was to avoid having to pay for PMI on a mortgage:

Pay 20% of the purchase price of the home up front in the form of a down payment; and

Obtain a second loan (commonly referred to as piggy-backing” in order to come up with the required down payments

Which method will work best for you will depend on your situation. In some cases, it will be impossible to come up with the 20% down payment, and sometimes obtaining a piggy-backed loan may require significantly higher interest rates, which will make make carrying PMI a more affordable option. The best way to approach the situation is to have all of the pertinent information available and take the time to analyze all of the options to see what best fits your financial plans.

POSTED BY SEBRINA ZERKUS SMITH ⋅ AUGUST 2, 2011

GM is now in the process of converting all of its plants, both manufacturing and non-manufacturing, to zero waste facilities.

General Motors has been working on ways to effectively divert landfill waste from its manufacturing plants for the past 5 years. Now the company has announced that its efforts to eliminate landfill shipments is spreading to its non-manufacturing sites as well. Ten of the company’s non-manufacturing plants now reuse, recycle or convert to energy all normal operational waste.

GM going green

According to John Bradburn, General Motors’ manager of waste reduction efforts, aggressive landfill diversion is not an option, but a necessity.  “It is an imperative for business survival,” he says. “If a company is not thinking this way, they are not going to survive far into the future.”

Converting non-manufacturing facilities presented a different challenge from the conversion of traditional manufacturing facilities. Differing waste streams meant implementing different programs to recapture and reuse materials. It meant rethinking packaging such as cardboard – a significant––and voluminous–– waste stream. GM engineers have worked to create more recyclable shipping and packaging designs that are intended for easy disassembly.

For instance, a landfill-free Customer Care and After sales facility in Burton, Michigan, is using an environmentally friendly, bio-based packaging foam that can block and brace items like sheet metal for shipping. The foam is made from extruded cornstarch, which is both biodegradable and compostable.

At the same facility, another supplier helped GM engineers solve a waste challenge with a patented technology that shears and separates cardboard boxes attached to wood pallets. The separation is necessary to recycle each material effectively, and with the least environmental impact. The technology not only enabled the plant to earn landfill-free status this year, but the facility now generates $20,000 a month from recycling its cardboard

“Our non-manufacturing facilities see the importance of being waste-reduction leaders, and they know their customers value it as well,” said Bradburn.  “Being landfill-free has become a point of pride for our people and we hope even more facilities achieve the goal this year.

Since 2007, the Detroit car giant has instituted waste reduction initiatives that have cut landfill amounts by as much as 97% at its manufacturing sites.  The diverted waste is either recycled or reused to make new GM car parts, or incinerated and used to generate energy.

Last year, GM converted 20 more of its manufacturing plants into zero waste facilities, bringing the company’s total number of landfill-free manufacturing sites to 76.

Overall, GM plants have recycled or reused 2.5 million tons of waste including scrap metal, wood, cardboard, machining materials and batteries. And, the company has added another $2.5 billion from selling waste for recycling over that same period.  The company has a goal of adding 10 more landfill free facilities by the end of 2011.  Last year GM surpassed it’s global operations commitment to make half of its 145 plants landfill-free.

What began by using paint sludge to make engine-shipping containers and turning cardboard into car roof interiors has morphed into an aggressive resource management strategy that General Motors now uses to recycle or reuse the majority of the waste its plants churn out.  Its an impressive achievement, and one that speaks well of the company’s commitment to long-term sustainability.

POSTED BY SEBRINA ZERKUS SMITH ⋅ AUGUST 2, 2011

http://mattermore.net/2011/08/02/gm-paves-way-for-more-zero-waste-facilities/

Solar Panels

I am about to get solar panels installed on my own home and thought you might want to know just what is involved. First off you should know that I am doing a “solar lease” from Solar City. It is really a great deal and they take care of all of the rebates and state incentives and just pass the savings directly on to you. Plus they are offering $500 off if you sign up in December and I get an referral incentive, so please mention that I sent you if you decide to sign up.

I went to 3 other solar companies first and found that the price was just not worth the savings with a purchase plan. It doesn’t even make sense for us to purchase with Solar City as we are very conservative with our electric usage. However, with this lease plan, we will get back our investment within 6 years (less if you count the fact that electric costs will be raising every year), we are not responsible for the panels if something breaks down, we will be using green renewable energy, and by the time the panels are old, Solar City will take them away and repair our roof with a 1 year leak warrantee.  No brainer, right?

So here is the process:

One of the advantages of working with SolarCity is that they take care of every step during your switch to clean power—including design, installation, permits and rebate paperwork. Below are the different stages you can expect during your solar system installation and if applicable your energy efficiency project:

• Site Audit—A SolarCity engineer will visit your home to take detailed measurements to design your system. This is also when we conduct the Home Energy Evaluation, allowing SolarCity to better customize your design providing a higher quality end product based on your home’s specific energy needs.
• System Design—Their engineering team will custom design a system to fit your home, based on its environment, architecture, roof space and orientation.
• Building Permit—They will submit the electrical and structural drawings to your local permit office.
• Installation—A home solar system typically takes only about three days to install.
• Fund Assignment—If you are a SolarLease customer—once installed—your system must be assigned to an existing lease fund.
• City / County Inspection—A city inspector will review your installation to confirm that it was installed to building and electrical codes.
• Utility Inspection—A utility inspector will review your installation and grant permission to connect your system to the power grid.
• Turn it On! —This is the best part as you get to turn on your solar system and start enjoying the benefits of producing your own clean solar energy and recognizing savings beyond solar from the Home Efficiency Package.

For more information please call John Garand the senior solar consultant at SolarCity at 650.963.5686 or email him at jgarand@solarcity.com.  The web address is www.solarcity.com.  And please remember to tell him that Heather Leikin referred you.

Owner's Advantage

By NICK TIMIRAOS

Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.

Where Housing Is Headed

The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.

As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas. It remains less expensive to rent than to buy in 15 cities. But affordability hasn’t done much to lift the sagging housing sector because many would-be buyers are unwilling to purchase a home or unable to qualify for a mortgage.

“It’s one of the most striking developments of the housing downturn,” said Paul Dales, an economist at Capital Economics. “The initial building blocks for a recovery are in place, but the legacy of the recession is really preventing households from taking advantage.”

In Atlanta, which had the most favorable values for owning versus renting, the monthly payment on the average home was $539 assuming a 20% down payment during the third quarter. By contrast, the average asking rent stood at $840, according to the Marcus & Millichap data.

Own vs. Rent

But real estate agents and economists say the trend hasn’t boosted demand. That is because affordability alone hasn’t been enough to overcome the obstacles in the way of a housing recovery. Some homeowners who would like to move up to larger properties are stuck because they can’t sell their homes.

Also, while the monthly carrying costs on a mortgage are lower than average rents in some cities, home ownership carries other costs—including taxes, insurance, homeowner association dues and maintenance—which may dissuade some potential owners.

Other would-be buyers can’t qualify for mortgages because lending conditions are tight or because they don’t have enough equity in their current homes to use as a down payments. “The reality of coming up with the down payment and the loan-qualification standards makes things much different than the raw numbers suggest,” says Hessam Nadji, managing director of Marcus & Millichap. And even those who may qualify remain skittish about buying property in a market where prices could fall amid foreclosures and weak job growth.

Ryan Young illustrates the point. He is under contract to buy a three-bedroom home in Washington Grove, Md., that will have monthly mortgage, tax, and insurance costs for around $150 less than the $1,900 he is paying to rent a slightly smaller house in Bethesda, Md. He qualified for a 30-year mortgage with a 3.95% fixed rate. Still, Mr. Young says he is cautious about owning his first home with the prospect of future price declines. “Buying a house is not a good financial decision, per se, but we needed a bigger place,” said the 35-year-old scientist, “and we don’t want to move every couple of years into a new rental.”

Other cities where owning is now cheaper than renting include Detroit, Minneapolis, Orlando, Las Vegas, Miami, St. Louis, Chicago and Phoenix.

Home ownership is also looking more affordable because after several years of declines, apartment rents will rise by around 4% this year, says Mr. Nadji. He says rents are poised “to pick up even more momentum across the country next year.”

Even cities where it is still cheaper to rent than own have seen big boosts in affordability. In San Diego, the monthly cost of owning a home has averaged around 83% more than renting over the past two decades. During the third quarter, owning was 22% more expensive than renting, according to John Burns Real Estate Consulting.

Mortgage rates are a big reason why affordability continues to improve. In 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, it gets that homeowner a $350,000 loan, a 77% increase in borrowing power, says Dan Green, a loan officer with Waterstone Mortgage, in Cincinnati. At the same time, low mortgage rates aren’t spurring sales because few analysts expect rates to rise anytime soon. The Federal Reserve in August said it would keep rates at ultralow levels for two years. In a normal interest rate cycle, “when they go low, they don’t stay for very long, and people jump in,” said Mr. Dales. “This time, there is no urgency.”

Affordability could continue to improve as prices slide even lower in coming months. Price declines are likely because the share of “distressed” sales, including bank-owned foreclosures, tend to rise in the winter, when traditional sales activity cools. Banks are often much quicker to cut prices to unload properties quickly, which means that the greater the share of “distressed” sales, the more prices tend to fall.

One hopeful sign is that inventories have fallen from their bloated levels of one year ago. All 28 cities in The Wall Street Journal’s latest survey saw homes listed for sale fall from one year ago, when markets were reeling with a substantial overhang of properties amid a big drop in demand. Visible inventory was down sharply in several markets, including by almost half in Miami and 40% in Phoenix.

Low inventories have spurred more bidding wars at the low end of the market as investors compete for homes that they can convert into rentals. In Sacramento, it would take just 2.5 months to sell the listed inventory at the current sales pace. Las Vegas has a 4.3 month supply of inventory, according to John Burns Real Estate Consulting. But the potential supply of homes is much bigger because banks have yet to process hundreds of thousands of potential foreclosures.

Write to Nick Timiraos at nick.timiraos@wsj.com

Make the Switch to LED Holiday Lights and Save Money
Indoor and outdoor LED lights use up to 90% less electricity than regular incandescent holiday lights and last up to 10 times longer. Use fiber optic decorations for even more savings!

Set the Timer
Limit the use of holiday lights. Keep lights off during the day and use a timer to help you better control the amount of time your lights are on in the evening. And remember to shut off lights when you’re not at home.

Bundle Up and Turn the Thermostat Down
Set your thermostat to 68 degrees or at the coolest comfortable temperature. Layer on another sweater and a pair of socks and take advantage of the extra warmth from your holiday guests to save on home heating costs.

Unplug Unused Appliances
Household appliances keep using electricity even if you are not there. If going on vacation, unplug televisions, stereos, computers, DVD players, chargers, etc. since these all draw small amounts of electricity even when they are turned off.

Fix Leaks
Checking for leaks in faucets, plumbing joints, and your sprinkler system and repairing them can save 20 gallons a day for every leak stopped.

Do You Know How to Shut Off Your Home’s Water Main Valve?
Locate, mark, and periodically operate your water shut off valves so they are easily identified in case of a pipe break or leak.

Let the Rain Do Your Watering
Remember outdoor watering is prohibited when it is raining. Redirect water from downspouts and channel storm water across your lawn and into your garden.

Run Only Full Loads in the Dishwasher
Run the dishwasher with full loads for optimum efficiency. If possible scrape dirty dishes clean to reduce water use or use only cold water to rinse them so you’re not running up your energy/gas bill by heating water unnecessarily.
Adjust Your Sprinkler Timer
Reduce sprinkler runtime schedules. Lawn and plants require much less water during the cooler months of the year.

Shorten Your Showers
As tempting as it is on those cold winter mornings, even a one or two minute reduction can save up to 375 gallons per month.

Recycle or Reuse
Reduce holiday waste by recycling or reusing wrapping paper, gift boxes, and shopping bags. After the holidays, look for ways to also recycle or reuse your tree instead of sending it to a landfill.

Hollywood's newest condos

Grand Opening week for the public will be Friday – Sunday October 14-16 from 11- 4pm.  Refreshments will be served. Plus agents can register for a 1/2% commission increase as our gift to you for our grand opening.  (This makes a buyer’s agent’s commission 4.5%!!!!!)

5633 Carlton Way
Hollywood, CA 90028
MLS #: 11-547779

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The House Agents Condos

We prefer a head count (RSVP) for refreshments, but not necessary. Just come!

We look forward to seeing you tomorrow.

Heather Leikin
Keller Williams Realty Westside
310-948-9000
Heather@TheHouseAgents.com
DRE #: 01853528
www.TheHouseAgents.com